IMGCAP(1)]
Nearly three-quarters of chief financial executives in regions around the world expect recessions in their countries to continue well into 2010, according to a new report by CFO Research Services and American Express Co. Between February and April, CFO Research Services gathered 285 complete responses to one-on-one telephone surveys from senior financial executives at 23 companies in the United States, Europe, Asia, Australia, Canada and Mexico. Annual revenue of the companies represented ranged from US$500 million (367 million euros) to $20 billion. Seventy-two percent of respondents said they expect economic contraction in their countries to continue into next year. But there is more optimism from executives about the second half of 2010, with 71% of respondents saying they believe their region's economy will recover by mid-2010. Respondents in Mexico were the most optimistic, with 95% predicting an economic turnaround by the second half of 2010. Canada followed with 81% saying so, then Australia with 77%, the U.S. with 64% and Europe with 58%. To weather the continued economic downturn, 85% of respondents said they have tightened controls over employee spending, and 71% said they have improved internal financial controls. Travel budgets will take a hit in the next year, the data show. Eighty-seven percent said their travel spending will decrease over the next 12 months, with 44% saying their companies would spend at least 10% less on business travel this year than they did last year.
